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November 2004

Corporate Tax Bill Includes Landfill Gas Tax Credit

Washington, DC— SWANA’s long-standing landfill gas tax credit effort, led by its Landfill Gas Advocacy Coalition, claimed victory recently when the U.S. Senate gave final approval to a corporate tax measure that includes landfill gas tax credits. The bill was sent to President Bush, who is expected to sign the bill into law.

The legislation, H.R. 4520, contains a section 45 credit for landfill gas (LFG) and Waste-to-Energy (WTE) for facilities placed in service between the bill’s enactment and December 31, 2005. The credit is good for 5 years at 0.9 cents per kwh. These parameters were applied as part of an effort to make the bill revenue-neutral, a condition necessary to ensure its passage.

John H. Skinner, Ph.D., SWANA’s Executive Director and CEO, commented, “This is a victory for all of our members who have worked so hard these last seven years to get tax credits for landfill gas recovery facilities.” He continued, “This legislation represents a major first step for landfill gas tax credits, and shows that leaders at the highest levels of our federal government have realized what SWANA has known all along: landfill gas is a real source of renewable energy, similar to solar power and wind. SWANA will continue to work to make gains in these credits and ensure their longevity.”

SWANA will continue its efforts by seeking an extension of the credit in the 109th Congress.